On Tuesday, Palomar Holdings cleared a noteworthy performance benchmark, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 92, up from 88 the day before.
IBD's proprietary RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
Decades of market research shows that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they begin their biggest climbs.
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Palomar Holdings is now considered extended and out of buy range after clearing an 89.22 buy point in a second-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings growth declined in the most recent report from 45% to 34%. But revenue gains moved higher, from 45% to 63%.
The company earns the No. 1 rank among its peers in the Insurance-Diversified industry group. Bowhead Specialty and Assurant are also among the group's highest-rated stocks.
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